Romanian Pres OKs Law Regulating Food Product Supplier, Vendor Relations

The law was approved by the Chamber of Deputies on September 16 and regulates relations between suppliers and sellers of food products, in order to prevent store chains from engaging in anti-competitive practices.

According to the law, sellers are prohibited from requiring their suppliers to pay for services which are not directly connected to the sale operation and are not covered by the purchase price. Furthermore, sellers may not compel their suppliers to sell their products at a price equal to or greater than that of other sellers, and removing a product from their range may only be done following a two-month notice of the supplier.

The law is to enter force within 30 days of its publication in the Official Journal.

Romanian Large Store Chain Association officials have described the law as „anti-competitive” and said it will lead to bankruptcies in the industry and force foreign retailers to terminate their investments in Romania.

Former Agriculture Minister Ilie Sarbu believed the law will lead to final consumers saving up 30% within months and Romanian producers avoiding to „beg” supermarket owners.